In 2019, Abu Dhabi awarded exploration rights for Onshore Block 1 to a leading Indian consortium. Following a successful exploration phase, a production concession was subsequently awarded to the joint venture, Urja Bharat (UBPL), which is a partnership between Indian Oil Corporation and Bharat Petroleum Corporation.

Recent Oil Discoveries

UBPL has announced a significant oil discovery from the exploratory well XN79 02S in Onshore Block 1. This well flowed light crude oil, marking the first oil find in the Habshan reservoir within the concession area. The discovery will be appraised and matured for potential development. Earlier in 2024, the JV made its first oil discovery in the block's unconventional Shilaif play via the XN-76 exploration well. After successful hydrofracking, this well also flowed light crude oil from the Shilaif formation, establishing the presence of unconventional oil resources in the block.

Future Plans and Development

Indian Oil expressed optimism regarding the well results and looks forward to further establishing the economic deliverability of wells during the appraisal phase. Additionally, through UBPL, both companies are advancing towards the development of the existing Ruwais field and exploring other potential hydrocarbon prospects within the concession area.

Concession Details and Strategic Context

The Onshore Block-1 production concession agreement covers an area of up to 6,162 square kilometres. This area includes conventional undeveloped oil and gas resources, and its development is intended to contribute to Abu Dhabi's efforts to expand its hydrocarbon sector and promote sustainable economic growth. The award of the production concession in 2024 followed a visit by Abu Dhabi's Crown Prince to New Delhi. Indian companies have been expanding their presence in Abu Dhabi, with other significant investments such as a stake in the Lower Zakum concession. It is also noted that Block 1 is home to the separate Ruwais Diyab unconventional gas concession, where exploration rights are held by TotalEnergies.